Generative AI is poised to have an impact on over 40 per cent of jobs worldwide, according to a new report by the United Nations Conference on Trade and Development (UNCTAD) published on Thursday, April 3.
Flagging concerns of widespread job displacement due to AI-driven automation, the report stated that AI could disproportionately affect developing economies by reducing their competitive advantage of low-cost labour.
“However, AI is not just about replacing jobs — it can also create new industries and empower workers,” the report read.
The global trade and development agency also estimated that the AI industry would reach $4.8 trillion in market value by 2033. The projected market cap for the AI industry is roughly the size of Germany’s economy.
But the benefits of AI could remain highly concentrated, UNCTAD noted in its report.
“AI is shaping the world’s economic future, yet 118 countries – mostly in the Global South – are absent from major AI governance discussions. As AI regulation and ethical frameworks take shape, developing nations must have a seat at the table to ensure AI serves global progress, not just the interests of a few,” the report added.
As per UN data, over 40 per cent of global corporate R&D spending takes place among just 100 firms, most of which are located in the US and China.
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“Leading tech giants, such as Apple, Nvidia and Microsoft, each have a market value of around $3 trillion, rivalling the gross domestic product of the whole African continent. Market dominance, at both national and corporate levels, may widen technological divides, leaving many developing nations at risk of missing out on its benefits,” the report said.
The disruptive potential of AI to lead to unemployment and inequality has been a long-standing concern. Last year, the International Monetary Fund (IMF) warned about these issues as well. In January 2025, a report by The World Economic Forum found that as many as 41 per cent of employers were planning on downsizing their staff in areas where AI tools could be deployed.
As part of its recommendations to ensure inclusive growth in the AI era, UNCTAD suggested the establishment of an AI public disclosure mechanism, shared AI infrastructure, and other initiatives to proactively share AI knowledge and resources.
The report also advocated for the use of open-source AI models.
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“AI can be a catalyst for progress, innovation, and shared prosperity – but only if countries actively shape its trajectory. Strategic investments, inclusive governance, and international cooperation are key to ensuring that AI benefits all, rather than reinforcing existing divides,” the report concluded.